Multiple Choice
Which of the following is true of the simple Keynesian model?
A) Price level increases with increase in aggregate demand
B) The aggregate supply curve is assumed to be perfectly inelastic
C) The aggregate demand curve is assumed to perfectly elastic
D) Price level is solely determined by the aggregate demand curve
E) Changes in aggregate demand determine equilibrium real GDP
Correct Answer:
Verified
Correct Answer:
Verified
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Q19: Which of the following promoted legislation that
Q20: Traditional Keynesian economists believed that:<br>A)the aggregate supply
Q21: Agreeing with Keynesian economists, monetarists believe that
Q22: The new classical school holds that:<br>A)macroeconomic equilibrium
Q24: According to monetarists, changes in the money
Q25: Which of the following economic theories takes
Q26: The time it takes for a particular
Q27: The new classical school of thought is
Q28: Which of the following schools of thought